WASHINGTON, June 27 /PRNewswire/ -- The US Conference of Mayors, an organization that includes more than 1,000 mayors from across the nation, this week voted unanimously in support of a resolution calling on Congress to create a comprehensive, integrated national catastrophe plan that includes a national catastrophe fund to enhance the availability of homeowners insurance in states across the country that are prone to natural disasters.
"The fact is that mayors are on the front lines before, during and after a catastrophe, and their unanimous support should send a strong signal to Capitol Hill that the time for action is now, before the next catastrophe strikes," said James Lee Witt, co-chair of ProtectingAmerica.org and former director of the Federal Emergency Management Agency.

In its resolution, the nation's mayors noted that the national catastrophe fund is essential to reducing the amount of after-the-fact expenditures of taxpayers' funds that the Congress appropriates to address damages that could otherwise be minimized by a national catastrophe fund and an integrated catastrophe preparedness program.

"The mayors' resolution echoes and amplifies ProtectingAmerica.org's findings that a national catastrophe program and fund would protect homes and lives, would save homeowners an estimated $8.4 billion in insurance premiums each year, and would remove an enormous burden on taxpayers," said Admiral James M. Loy, also a co-chair of ProtectingAmerica.Org and former deputy secretary of the US Department of Homeland Security.

In addition to the $8.4 billion that homeowners would save through a national catastrophe fund, an analysis by the leading international actuary Milliman Company found that a total of $11.6 billion could be saved if states established similar privately funded catastrophe funds.

About ProtectingAmerica.org

ProtectingAmerica.org is a non-profit organization consisting of emergency management officials, first responders, disaster relief experts, insurers and others. Its members include the American Red Cross and more than 275 other organizations and businesses.

At the core of ProtectingAmerica.org's mission is the establishment of a comprehensive, integrated national catastrophe management solution that will better prepare and protect American families, communities, consumers and the American economy from catastrophe. ProtectingAmerica.org is working to increase public awareness and enhance consumer education; advocate for better coordination with local, state and federal mitigation and recovery efforts, and strengthen emergency response and financial mechanisms to rebuild after a major catastrophe.

The organization supports comprehensive federal legislation that would establish a privately financed national catastrophe fund that would serve as a backstop to state catastrophe funds. The funds' private deposits and the majority of its earnings could only be used to cover replacement and rebuilding costs following major catastrophic events. A portion of the funds' earnings would be dedicated to increase public and consumer education, strengthen first responders, and enhance building codes and their enforcement.

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Source: ProtectingAmerica.org